Tuesday, December 10 2019 15:34

ArmInfo.Over a year and a half, the RA government returned working capital in the amount of 180 billion drams ($ 377mln) to the business. The Prime Minister of  Armenia Nikol Pashinyan wrote about this on his Facebook page.

 Thus, according to the head of the government, as of January 1, 2018, the  government owed business entities over- payments of taxes in the  amount of 275 billion drams ($ 576 million). As of December 1, 2019,  the debt is 95 billion drams ($ 199mln), including current debts and  VAT debits. "That is, in a year and a half, the government returned  working capital in the amount of 180 billion drams to the business.  The process continues, including VAT in the form of a refund of  debits," Pashinyan wrote. 

Earlier, ArmInfo reported that on September 12, the Armenian  government decided to return 56 billion drams worth of VAT debit  balance to business entities. As the head of SRC David Ananyan  explained, after the entry into force of the new Tax Code, the  difference between the old and the new debit balance was established.  New ones - after July 1, 2018, are returned to economic entities on  the basis of their own quarterly statement, while the old ones are  sent exclusively to pay off upcoming VAT obligations.  "With this  decision, we eliminate the distinction between old and new  receivables, which will be applied from January 1, 2020," he said.  Moreover, as the head of the SRC pointed out, the very next day,  after the approval of the bill, taxpayers can apply for extra  payments formed at that time according to the following scheme: for  business entities with debts of less than 5 million drams, VAT debit  will be returned without desk checks , for debts of 5 to 40 million  drams, VAT funds will be returned in a simplified manner - based on  the application of the economic entity and the information available  to the tax authority, and if the threshold of 40 million drams is  exceeded - funds will be returned based on the results of documentary  studies and confirmation of validity.  According to the head of the  tax and customs committee, the matter is about 9 thousand business  entities, 3 thousand of which are old debit debts - the state owed 56  billion 443 million drams. "By the end of the year, we will return 50  billion drams from the indicated 56 billion drams," Ananyan said.  

The head of the SRC reminded that as of January 2018, the tax  authority owed 275 billion drams to business entities.  Having  resolved the situation with 50 billion drams, as the chief tax  specialist pointed out, 72-75 billion drams remain for current  obligations, which are formed and repaid. "I think by January 1, 2020  we will be able to declare that within two years we have reduced our  debt to business entities by 220 billion drams, which is common for a  developed state," he said.